Headlines
▌US Congressman Tom Emmer Appointed Vice Chair of Digital Assets, Financial Technology and Artificial Intelligence Subcommittee
Forbes reporter Eleanor Terrett reported that House Financial Services Committee Chairman French Hill has appointed Tom Emmer as Vice Chair of the Digital Assets, Financial Technology and Artificial Intelligence Subcommittee. He also nominated other Republican members to the committee.
▌US SEC Sues Musk: Failed to Disclose Twitter Stock Purchase as Required, Saved $150 Million
The US SEC filed a lawsuit in the US District Court for the District of Columbia on Tuesday, accusing Musk of violating securities regulations. The SEC said Musk purchased more than 9% of Twitter's common stock in March 2022 but failed to timely disclose the information, violating federal securities laws. Musk delayed the disclosure by 11 days and did not reveal his beneficial ownership until April 4, 2022 in a filing with the SEC. This delay allowed Musk to continue purchasing Twitter stock at an artificially lowered price, saving him at least $150 million. On April 4, 2022, Twitter's stock price rose more than 27% from the previous day's closing price. Musk's lawyer responded that Musk did nothing wrong and the lawsuit is "a travesty".
Market
As of press time, according to Coingecko data:
BTC last traded at $96,548.53, up +2.3% on the day;
ETH last traded at $3,223.56, up +2.9% on the day;
BNB last traded at $699.67, up +1.7% on the day;
SOL last traded at $187.52, up +2.8% on the day;
DOGE last traded at $0.3556, up +5.6% on the day;
XRP last traded at $2.66, up +5.7% on the day.
Policy
▌SEC Delays Decision on Bitwise BITW Conversion to ETF Until July
According to a public regulatory filing, the SEC has delayed its decision on Bitwise 10 Crypto Index Fund's (BITW) application to convert to an ETF until late July. This means Bitwise ETF approval will have to wait even longer. Additionally, Bloomberg ETF analyst James Seyffart noted that the next deadline for Grayscale's GDLC is February 2nd, and a delay is expected.
▌SEC Chair: 2024 Election Result Not Dependent on Crypto Interests' Funding
In an interview with CNBC Squawk Box host Andrew Ross Sorkin, SEC Chair Gary Gensler stated that he believes crypto voters and digital asset interests' funding is unlikely to influence the outcome of the 2024 US presidential election to the benefit of former President Donald Trump.
He said: "I think, as you point out, this election did raise funds from the crypto space, but I don't think that's the purpose of this election, this highly speculative space, crypto, has been out of compliance with all sorts of laws, whether it's anti-money laundering, sanctions, or in our case, the securities laws."
▌SEC Chair: SEC Has Never Said Bitcoin and Ethereum Are Securities
Outgoing SEC Chair Gary Gensler told Yahoo Finance on Tuesday that the commission "has never said" that BTC and ETH are securities, and neither he nor former SEC Chair Jay Clayton had stated that BTC is a security.
Blockchain Applications
▌Hashed CEO: AI Has a "Black Box" Problem
Hashed CEO Simon Kim, in an interview, stated that he believes the future of AI depends on a fundamental shift: breaking the black box of centralized models like OpenAI and building a decentralized, transparent ecosystem driven by blockchain.
He said: "AI is being centralized. OpenAI is not open and is controlled by a very small number of people, so it's very dangerous. Creating this [closed-source] base model is like creating a 'god', but we don't know how it works." Kim believes that open-source AI models like Meta's Llama are examples of building AI with decentralization and transparency in mind.
Cryptocurrencies
▌SEC Chair: Bitcoin is Like Gold, 7 Billion People Globally Want to Trade It
SEC Chair Gary Gensler, in an interview, stated that "BTC is a highly speculative asset, but 7 billion people globally want to trade it. Just as we've had gold for 10,000 years, we now have BTC."
On the regulatory stance, Gensler pointed out that the SEC has never classified BTC as a security. For the thousands of other crypto projects, he emphasized the need to prove their actual use cases and fundamental value. When the host jokingly asked if he "must hold BTC", Gensler said he has not held any cryptocurrencies in the past 7-8 years. The host then quipped that he "can hold it now" since he is about to step down as SEC Chair.
▌Standard Chartered: If BTC Breaks Below $90,000 Support, It Faces 10% Downside Risk
Standard Chartered's global head of digital assets research Geoff Kendrick warned that if BTC "breaks below $90,000", it could face a downward trend. Kendrick highlighted in a Tuesday report that there is "convexity risk" due to the increased likelihood of spot ETF redemptions, which could push BTC prices below $80,000 in the short term.
Kendrick stated: "We believe a break below $90,000 would lead to a further 10% downside to around $80,000 in the near term. All other digital assets' prices are likely to fall in tandem, and we would recommend rebuilding long positions once the correction is complete."
▌Trump Family Project WLFI Exchanged 103.15 WBTC for 3,075.19 ETH at $3,226 Average Price
According to Onchain Lens monitoring, the Trump family project WLFI sold 103.15 WBTC worth $9.92 million at an average price of $3,226, receiving 3,075.19 ETH in return. The project also sent 18,535.82 ETH worth $59.72 million to multiple wallets and Coinbase Prime. It also purchased 17,619 WBTC for $96,495, worth $1.7 million.
▌ARK Invest: Bitcoin's Relative Volatility is Low, Expected to Rise Further by 2025
ARK Invest, in its "Bitcoin Monthly" report, stated that although BTC's volatility spiked at the end of Q4, it was "not significant in historical context". BTC's December monthly volatility was relatively mild compared to its annual volatility, and the lower relative volatility suggests BTC has not yet entered the frenzy stage of its cycle, implying further upside potential, especially in a bull market.
ARK's report said: "In fact, these data points suggest further upside for the market by 2025."
▌ETF Store President: Over 50 Crypto ETFs May Be Approved This Year
ETF Store President Nate Geraci stated that 2025 could be the "year of the crypto ETF". He predicted that under the new SEC Chair, over 50 crypto ETFs will be approved, including spot Solana and XRP funds, as well as options-based and equity-based products.
▌Analysis: Trump's Inauguration May No Longer Be a "Sell the News" Event for Bitcoin
According to K33 analysis, after Trump's election, the price of Bit rose sharply due to expectations of his support for cryptocurrencies, but since mid-December, the market has faced macroeconomic pressure, leading to a cooling of the market. Although it was previously expected that Trump's inauguration would be an event of "selling after the good news is realized", analysts pointed out that as the inauguration date approaches, the gap between market expectations of Trump's policies and the actual political process has made this strategy less attractive. Trump's trade rhetoric may bring inflationary pressure, but tax cuts and favorable crypto policies are expected to drive the rise of risk assets. Although Bit prices fluctuate in the short term, K33 is optimistic about Trump's long-term impact.
Important Economic Dynamics
▌The probability of the Fed keeping rates unchanged in January is 97.3%
According to the CME "Fed Watch", the probability of the Fed keeping rates unchanged in January is 97.3%, and the probability of a 25 basis point rate cut is 2.7%. The probability of keeping the current rate unchanged by March is 79.8%, the probability of a cumulative 25 basis point rate cut is 19.7%, and the probability of a cumulative 50 basis point rate cut is 0.5%.
▌The US dollar index fell 0.61% on the 14th
The US dollar index, which measures the US dollar against six major currencies, fell 0.61% that day, closing at 109.280 in the foreign exchange market. As of the close of the New York foreign exchange market, 1 Euro was exchanged for 1.0298 US dollars, higher than 1.0208 US dollars the previous trading day; 1 British pound was exchanged for 1.2200 US dollars, higher than 1.2167 US dollars the previous trading day. 1 US dollar was exchanged for 157.94 Japanese yen, higher than 157.81 Japanese yen the previous trading day; 1 US dollar was exchanged for 0.9127 Swiss francs, lower than 0.9191 Swiss francs the previous trading day; 1 US dollar was exchanged for 1.4365 Canadian dollars, lower than 1.4412 Canadian dollars the previous trading day; 1 US dollar was exchanged for 11.1796 Swedish kronor, lower than 11.2895 Swedish kronor the previous trading day.
▌US stock indexes were mixed, with most large-cap tech stocks falling
The three major US stock indexes closed with mixed results, with the Nasdaq falling 0.23%, the S&P 500 rising 0.11%, and the Dow Jones rising 0.52%. Most large-cap tech stocks fell, with Tesla, Nvidia, and Netflix falling more than 1%. Meta fell more than 2%, with the company planning to lay off 5% of low-performing employees.
Jinse Encyclopedia
▌What is a Sybil attack in crypto?
In the cryptocurrency environment, Sybil attacks often target the decentralized nature of blockchain platforms. Even if they do not target the encryption algorithms of cryptocurrencies, disrupting the underlying peer-to-peer network infrastructure on which cryptocurrencies depend can lead to service interruptions, loss of funds, and a decline in user trust. Attackers can focus on specific nodes or servers to interfere with the consensus process, transaction verification, or node-to-node communication. This can lead to network fragmentation, processing delays, or even complete shutdown.
Disclaimer: Jinse Finance, as a blockchain information platform, the articles published are for information reference only and do not constitute actual investment advice. Please everyone establish the correct investment concept and must improve risk awareness.
